Open Europe, a leading European Think Tank, has warned that Britain could risk losing its status as a hub for financial services, unless a deal aimed to maintain UK-based banks rights to sell services freely across the European Union is reached. Thus, “pass-porting rights” have to be made Britain’s top priority in negotiations with the EU, since their failure could have repercussions on the continent; specifically, “[n]on-EU financial centres are just as well placed to reap the benefits” and banks could decide to move their business from Britain to New York or Singapore. Moreover, the UK’s financial services sector only employs 1.9 million people. The Financial Times reported that the British government is currently considering proposals that could see billions of pounds paid into the EU budget in exchange for giving the financial sector continued access to the single market. Indeed, the Think Tank, whose Co-Director, Raoul Ruparel, who recently joined David Davis’s Brexit advisory team, said the government should aim to offer the maximum industry certainty as early on as possible, because some firms may start implementing their contingency plans even earlier than the UK formally exits the EU. Vincenzo Scarpetta, Open Europe’s Senior Policy Analyst, said firms were planning in case the UK was to leave the single market without any kind of regulatory equivalence. Calls have come from the City for a transitional deal to be put in place if the UK does not retain single market membership, warning food prices will see a steep hike if the UK reverts to World Trade Organisation tariffs. Under WTO rules, tariffs will also have to be applied to all imports into the UK until a trade deal with the EU is struck. On the other hand, a new poll, commissioned by the Open Britain Campaign, shows that nearly three-quarters of the public thinks the government should seek parliamentary approval for their Brexit plans before Article 50 is triggered. An attempt has been made by a powerful cross-party group of MPs to force a parliamentary vote on whether the government should reveal its plans for the UK’s future outside the EU before negotiations start. The gLAWcal Team LIBEAC project Wednesday, 17 October 2016 (Source: The Gardian)